We’re often asked “how to rent to own my house.” Here’s a great overview of a rent to own contract by Kirk Haverkamp for Credit.com Blog. Learn the variations of these agreements and read real-life examples. See how to find rent to own homes, get a mortgage when the lease period is over, and learn about the rent-to-own disadvantages.
Though there are variations, the basic lease-with-option-to-buy arrangement works like this: a potential buyer signs a lease to rent a home they are interested in, with the lease typically running two or three years.
During that time, the landlord/seller sets aside part of each month’s rent payment into an escrow account. When the lease is up, provided the payments have been made in a timely manner, the renter can use the money in the escrow account as a down payment to purchase the home outright. Read full article on Credit.com Blog.